Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Jimbo who wrote (1838)	1/28/2000 6:57:00 AM
From: edamo	Respond to of 8096

jimbo...re: "uncertainty" one must make decisions when taking any position. basic fundamentals and technicals of the underlying issue are primary. secondary is any psychological effect that an external force may cause. if the effect is due to a reaction that has no basis in fact, then the effect is shortlived and you get what you called a knee jerk reaction. if we had inflation, i would be more cautious. strong economy in place, fear causes volatility, but tremendous liquidity causes cash inflow on dips. bonds in a low inflation economy are not the flight to safety, investors know this. should the economy deflate or inflate, i would take a different posture. for now, i assume a risk and require a reward in line with the risk. in today's market three weeks is an eternity. in the case of broadcom, it may go lower, but probability it will go higher. my assumption is that it will settle by february expiration above 249 (260strike-11premium) should it run to 330 prior, as it has the ability to do, i would take profits as the premium erodes. put selling requires a certain amount of skill, and understanding of the short term momentum of the underlying. i stated that i may be early with brcm, but it appears ready to turn short term, providing no specific or market negative news. thanks...ed a.